Denmark and Sweden reach agreement on PostNord

Today the Danish and Swedish governments have reached an agreement to support the implementation of the new production model for the Danish business of PostNord.

Minister for Finance Kristian Jensen says:

– I am pleased that we and our Swedish colleagues have reached a good solution, which ensures the implementation of the transformation of Post Danmark. This way the company will be well equipped for the future challenges in the postal market.

Minister for Enterprise and Innovation Mikael Damberg says:

– Through this agreement we begin a new chapter for the company. Starting now, focus will be on quality and how to grow the whole company stronger for the future. I would like to express my gratitude to the Danish state for showing re-sponsibility in this difficult situation.

The agreement entails that both the Danish and the Swedish states will inject capital into PostNord to support the new production model, the Swedish state will inject SEK 400 m whilst the Danish state will inject SEK 267 m. Also, the Danish State will compensate PostNord SEK 1,533 m for the cost of redundancy pay to employees on 'special terms' in Post Danmark.

In addition to the capital injection from the Danish and Swedish states the com-pany will explore other options to strengthen the company's financial position.

The states recognize and are attentive to the changing nature of the postal markets and continued digitalisation process. Each state has the regulatory responsibility for USO in its home market. The states agree that a model to mitigate future financial exposure of each party to the USO requirements should be analysed. In the event that, due to falling mail volumes, the USO in Sweden cannot be performed at cost, the Swedish state shall compensate the Company provided that the Company has been assigned to perform the USO.

As a commitment to the on-going, strong corporate governance of the Group, the states also agree to enact a strategic review of the Company in order to ensure that its activities will be developed and improved to the highest standards.

The agreement is subject to the consent of the Danish Parliament's Finance Committee, the Swedish Government, the Swedish Parliament and, as regards the state aid elements, approval from the European Commission.